Premier Foods to start stockpiling ahead of Brexit

Mr Kipling cakes firm Premier Foods has revealed it is to start stockpiling ingredients ahead of Brexit amid fears of gridlock at ports if the UK crashes out without a deal.

The group, also behind well-known brands including Bisto and Oxo, said it was “shortly” to begin building up stocks of raw materials “in the absence of certainty over the arrangements for the UK’s departure from the EU”.

It said this could lead to a working capital hit of around £10 million over the next few months.

The group said: “Like all businesses, for several months, Premier Foods have been planning on a range of scenarios subject to the nature of any Brexit deal that is reached.

“In the absence of certainty for the UK’s departure from the EU, Premier Foods shortly intend to begin the process of building stocks of raw materials to protect the company against a risk of delays at ports.”

It stressed the move was “purely precautionary”.

The revelation came as Premier Foods also announced that under-fire boss Gavin Darby will leave in January and said it plans to sell off its Ambrosia brand as it looks to appease disgruntled shareholders.

Mr Darby will step down on January 31 after six years in the role, which follows a public row with activist investor Oasis Management and comes just months after he narrowly survived a shareholder rebellion against his re-election.